What is RTGS?

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What is RTGS?

Before knowing about RTGS, we learn about a little Cheque system, then we will know that what kind of Problems Customer Face used in the Cheque system, due to which the Reserve Bank of India Had to think in

Let's say you got someone paid by Cheque. You will now go to the concerned Bank Branch and fill the slip and deposit Cheque. After two or three days, it will clear the check and will be amount credited to your bank account.

This process takes a lot of time to complete and if you need an Immediate Fund, your work will definitely get stuck.

There are many more types of Problems in the Cheque system. like-

  • You have to calculate Banking Hours and Bank Holidays in the Cheque System, and now Extra Saturday is also taking off. After finding out all this, you also need to keep in mind that how long will you get money in your bank account after making a check?
  • In the Cheque system, you have to check Balance again and again so that it can be known whether Cheque is clean or not.
  • There is also the problem of having a Cheque Bounce in the Cheque system, and if Cheque Bounce is done then it is also difficult to calculate how much delay will be available to get the amount, because then we may have to take legal action against the person doing the Cheque Issue. Which is a very long, costly, time consuming and mental troublesome job.
  • Cheque is also afraid of writing, lost, handwriting, cheque burst, signature mismatch, in the Cheque system.

Keeping in mind all of these problems, RBI has introduced NEFT and RTGS, two new ways to transfer funds, through which you can easily transfer funds to anyone. These ways give customers a lot of comfort. Through this, you can transfer funds to both online and offline. By using these, you can easily transfer funds to anyone in Electronic Manner.

In this article, we will only know about RTGS and about NEFT, we have what is Meant by NEFT Fund Transfer - What is NEFT? Discussed in the article.

What is RTGS

RTGS means Real Time Gross Settlement. RTGS is an electronic medium for transferring funds from one place to another, in which fund is transferred to the Real Time Basis.

If you see the simple meaning of RTGS, then any Transaction in it becomes Immediate, which is called Real Time. In this, as soon as you fill out the beneficiary information of the Beneficiary Customer information, then immediately it is fund transfer and credited to the Beneficiary Customer's account. It takes about 30 minutes to complete Transaction.

Through RTGS you can transfer at least Rs. 2,00,000 and there is no limit of maximum, you can transfer as much as you want, as long as your bank branch does not fix the limit for you.

Steps to follow the online method for RTGS

In Online Mode, you can use RTGS by using Internet Banking. In this also, the person you want to fund transfer has to add to your account as a Payee or Beneficiary Customer, and after that Bank checks the Beneficiary's Detail. The Bank takes about 12-24 hours to complete the Checking of Beneficiary.

When the Checking Process is completed by the Bank, the Beneficiary Customer is activated by the Bank, after which you can transfer funds to that Beneficiary Customer.

To add any person to your bank account as beneficiary or payee, you must have the following information related to the Beneficiary Customer otherwise you can not add it as a Beneficiary through your Internet Banking A / c-

  • Beneficiary Customer should be Bank and Bank Branch's name.
  • Beneficiary Customer should have Name and Account Number.
  • Beneficiary Customer's Bank should have the Indian Financial System Code (known as IFSC.). IFSC Code is written on Cheque Book.

Steps to follow on the selection of Offline Method for RTGS

  • If you use the offline method, you will have to fill a slip in the same way by going to the Physically Bank Branch, the way you normally fill it while cheque deposits.
  • As soon as you deposit and deposit Instruction Slip, Sending Bank feeds information that is filled in that Instruction Slip into your Central Processing System.
  • Only after feeding on Information Central Processing System, RBI is sent.
  • RBI completes the process of Transaction and completes Amount Credit by debiting Amount from Sending Bank's account, in the account of the bank being RTGS.
  • After this full process, a Unique Transaction Number (UTN) is generated, which RBI sends to Amount Sender Bank. Receiving this UTN to Sender Bank means that Fund Transfer has been done.
  • As soon as the Amount Sender receives the UTN receipt, the bank gives its information to the bank receiving the Amount and after that the Receiver Bank He Amount credits the account holder's account, which has been sent Amount. .

Thus, during the period of about 30 minutes, your RTGS Transaction completes and credit is credited to the Fund Beneficiary Account.

What is RTGS required for?

Most RTGS transactions are done by traders as they are related to their business, many times the transaction of high value is done throughout the day, and high value transactions can be done through RTGS only. But RTGS can also use Common Investors or Person.

If an investor or person has to fund a transfer of INR 200,000 or more from one account to another or another person's account, then funds can be transferred using RTGS. You can also use RTGS if you want to invest in the Mutual Fund.

Benefit of RTGS

  • Useful for High Value Transaction
  • Transaction is completed within approximately 30 minutes.
  • Saves time.
  • Useful for Business Requirement.
  • Fees less on transfer of more money.
  • Bank has the right to reduce transfer fees. Therefore, if the bank wants to reduce the transfer fees.
  • In the Cheque system, the money received is required to go to Bank Branch whereas while the Online / Offline RTGS, the fund receiver does not need to go to the bank branch.

Important Things Related to RTGS

Many banks fix the limit of Amount and Transaction of RTGS you do and you can not transact more than the fixed limit in one day, then you should know that your Bank Branch will give you a per day how much transaction Allow for

You should also ask about the Bank Transaction Cost per Transaction Cost, because every bank charges the transaction charge accordingly.

One thing to note in particular is that the Cheque System has not been closed since the coming of Electronic Fund Transfer Facility, but today the Cheque System Facility is available and the old people who are not tech savvy are still using the Cheque System as an online system Giving more importance in comparison. But even though the people of New Generation are becoming tack savvy, Cheque's trend has started to decline.

Fastread.in Author Manisha Dubey JhaDear Reader, My name is Manisha Dubey Jha. I have been blogging for 3 years and through the Fast Read.in I have been giving important educational content as far as possible to the reader. Hope you like everyone, please share your classmate too. As a literature person, I am very passionate about reading and participating in my thoughts on paper. So what is better than adopting writing as a profession? With over three years of experience in the given area, I am making an online reputation for my clients. If any mistakes or wrong in the article, please suggest us @ [email protected]

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